Florida statues, rules, and regulations common to all lines

If the agent advises a policyholder to replace an insurance policy but only does so for the purpose of making commissions the agent has committed an act of

Churning

An insurance producer just sold insurance policy to his sister. What kind of business is this?

Controlled

No insurance policy form can be issued delivered or used in the state unless it has been

Filed with and approved by the office of insurance regulation

Who may receive dividends from a mutual insurer ?

Policyholders

Pertaining to insurance, what is the definition of a fiduciary responsibility?

Promptly forwarding premiums to the insurance company

Which of the following statements is incorrect?

Replacing insurance policies for the purpose of making commissions is legal

Which of the following insurers are owned by stockholders?

Stock

What are the 2 offices of financial services commission?

The Office of Financial Regulation and the Office of Insurance Regulation.

When An insurer appoints an agent

The insurer is bound by the agent's acts.

In accordance with the code of ethics agents must provide a completed application to

The prospective insured and the insurer

A producer who fails to segregate premium Monies from his own personal funds is guilty of

commingling

Which of the following would be an example of an unfair claims settlement practice?

failing to acknowledge a claim within 30 days

Circulating deceptive sales material to the public is what type of unfair trade practice?

false advertising

An insurance company is domiciled in Montana and transacts insurance in Wyoming which term best describes the insurers classification in Wyoming ?

foreign

Which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?

fraternal benefit society

An Insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?

mutual

In order to maintain an insurance license, an agent will need to Satisfy Florida's continuing education requirement of

24 hours of continuing education in every two-year period

An agent has been convicted of a crime punishable by a one year imprisonment within how many days must the agent notify the department of insurance?

30 days

What level of authority is given to the office of insurance regulation with respect to examination of insurers activities to determine compliance unfair trade practice laws?

Absolute

Which of the following is the closest term to an authorized insurer?

Admitted

Which of the following would not be a violation of state insurance regulations?

Agent C uses her license to write only business other than controlled.

When transacting business in the state an insurer formed under the laws of another country is known as a/an

Alien insurer

How are state Insurance Guaranty Associations funded?

By their members - authorized insurers

Which of the following must an insurer obtain in order to transact insurance within a given state?

Certificate of Authority

Who examines the books and records of insurance companies in Florida

Chief Financial Officer

An applicant for an insurance agent license must

Complete a pre-licensing education course

Two individuals are in the same risk in age class yet they are charge different rates for their insurance policies due to an insignificant factor what is this called?

Discrimination

Which of the following is NOT a responsibility of the office of insurance regulations?

Enacting new insurance laws

An agents client needs additional insurance which the agents own insurer cannot provide. the agent has to solicit additional coverage from another authorized ensure. this coverage is known as

Excess

Failure of a licensee to maintain an appointment with an insurance company within 48 months after the date the license became effective will result in

Expiration of license

All of the following actions can be described as twisting except

Explaining to client the advantages of permanent insurance over term and suggesting changing policies

All of the following are general qualifications for an agents license except

Have a high school diploma

Which of the following entities protects policy owners insureds and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment?

Insurance guaranty Association

Which of the following is not true regarding a certificate of authority?

It is issued to group insurance participants.

In which of the following situations is it legal to limit coverage based on Marital status?

It is never legal to limit coverage based on marital status

Back in college Bob was arrested on drug charges that were eventually erased from his records after completing medical school he applies for a disability policy and does not reveal this information he is issued a standard policy 17 months later he incurs a substantial claim due to back injury while investigating the circumstances of the claim the insurance company discovers the earlier drug use what will most likely happen?

The policy will be voided

Which of the following is an example of a producers Fiduciary duty?

The trust that a client places in the producer in regard to handling premiums

A licensed agent must complete how many hours of continuing education specific to ethics and regulatory updates?

5

In the state of Florida it is illegal for a licensees commissions from controlled business to exceed what percentage of the total in a given year?

50%

Which of the following best describes the unfair trade practice of defamation?

Making derogatory oral statements about another insurer's financial condition

All of the following would be considered rebating except

An agent misrepresents policy benefits to convince a policy owner to replace policies.

Which of the following will not be considered unfair discrimination by insurers?

Discriminating in benefits and coverages based on the insured's habits and lifestyle

The office of insurance regulation is responsible for all of the following insurer activities EXCEPT

Issue of securities

Which of the following entities is responsible for agent licensing and administrative supervision?

Office of Insurance Regulation

If a person accumulate more continuing education hours that is necessary to fulfill the requirements for a two year period Which of the following will occur?

The extra hours may be continued into the next period

Which of the following is an agreement between an insured and an insurer where the insurer agrees to indemnify the insured for specific losses in exchange for a premium?

The insurance contract

Under what circumstances can an agents appointment be transferred to another person

Under no circumstances

Which of the following is true regarding branch agency licensing?

agent in charge must be licensed

How often must domestic insurance companies be examined by the chief financial officer in Florida?

at least every 5 years

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer?

authorized

Which of the following authorities grants and revoke licenses?

Department of financial services

When a producer was reviewing a potential customers coverage written by another company the producer made several remarks that were maliciously critical of the other insurer The producer could be found guilty of

Defamation

Continuing education requirements must be met every

2 years

Which of the following is not considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies